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Realty firm Jaypee Infratech's Interim Resolution Professional (IRP) has opined that state-owned NBCC's revised bid was conditional and non-binding, which ran contrary to terms of the insolvency proceedings, sources said.

The Committee of Creditors (CoC) is scheduled to meet on Thursday (May 9) to discuss NBCC's revised offer to acquire debt-laden Jaypee Infratech.

The public sector unit has proposed infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore to banks and completing construction of flats by July 2023 to settle an outstanding claim of Rs 23,723 crore of financial creditors.

Sources said NBCC has put several conditions for the implementation of its plan, including a demand to extinguish an estimated income-tax liability of Rs 33,000 crore over a period of 30 years arising out of the transfer of land parcels from Yamuna Expressway Industrial Development Authority (YEIDA) to Jaypee Group.

The IRP Anuj Jain has written to the CoC that NBCC's revised bid is conditional as the state-owned firm has stated that the plan will not be binding on it unless key reliefs such as extinguishing of income tax liability and a dispensation from seeking consent of YEIDA for any business transfer is granted, sources said.

The IRP pointed out that the insolvency process approved by the CoC in December last year provided that the resolution plans from potential bidders should be binding and non-conditional, they added.

The court-mandated deadline for completing the resolution plan for Japyee Infratech ended on May 6 and the CoC has sought an extension of the deadline. The Allahabad bench of the NCLT has posted the matter for hearing on May 21.

The CoC had on May 3 rejected a bid of Mumbai-based Suraksha Realty group, which was the lone contender after NBCC's revised offer was rejected in absence of approvals from the government departments.

NBCC has now got the approval from the relevant government authorities for its revised offer, which was submitted to the IRP on April 24. In its revised offer, NBCC has put several conditions for carrying out its commitment.

Sources said NBCC, in the revised resolution plan, has offered to transfer 100 per cent equity in the Expressway SPV (special purpose vehicle) -- to be created by transferring Delhi-Agra Expressway assets of Jaypee Infratech -- to the banks.

It has proposed that the banks should raise a minimum of Rs 2,000 crore against the Expressway SPV (by securitising its toll income) and provide Rs 1,500 crore from this amount to the state-owned company, which could utilise it for making upfront payments and to start construction on the stuck projects, sources said.

The plan further provides for settling Rs 9,712 crore of claims of operational creditors, including Rs 3,334 crore by the income tax department, Rs 1,689 crore towards compensation to landowners and Rs 4,423 crore to YEIDA, by paying Rs 20 crore.

Sources said NBCC has proposed Rs 62.40 crore upfront payment to buyers who had sought a refund.

During the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group was rejected by lenders as it was found to be substantially lower than the company's net worth and assets as well as the liquidation value of about Rs 14,000 crore.

Jaypee Group Chairman Manoj Gaur had promised to infuse Rs 2,000 crore to complete pending 20,000 apartments over the next four years.

The crisis-hit group had submitted a Rs 10,000-crore plan before lenders in April 2018 as well, but the same was not accepted.

JAL had submitted Rs 750 crore in the registry of the Supreme Court for the refund to buyers and the amount is lying with the NCLT.